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news.NeoStem, a stem cell collection company, has agreed to acquire a Hong Kong corporation, whose wholly-owned subsidiary, Beijing HuaMeiTai Bio-technology, has a series of contracts with Shandong New Medicine Research Institute of Integrated Traditional and Western Medicine that establish control over Shandong's business, personnel and finance as though it were a wholly-owned subsidiary.
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Shandong New Medicine Research Institute currently administers a multitude of treatments and is a provider of regenerative medical therapies in China which strategically fits into both NeoStem’s existing business and intellectual property platform. Through the acquisition, NeoStem expects to align itself with Wang Taihua, founder of Shandong New Medicine Research Institute.
The consideration to be paid by NeoStem to effect the acquisition is five million shares of common stock. This acquisition is subject to the approval of the shareholders of NeoStem, regulatory approvals, as well as the satisfaction of other customary conditions and is expected to close in the first calendar quarter of 2009.
Robin Smith, CEO of NeoStem, said: “NeoStem is very excited at the idea of bringing our expertise in cell extraction and preservation protocols as well as advances in R&D and clinical trial know-how to roll out in China through Shandong New Medicine Research Institute and believes the strong strategic fit of the two companies will result in an acceleration of the business model of both companies.”